Abu Dhabi National Energy Company (TAQA) has secured an 8.5 billion UAE dirhams ($2.3 billion) term loan aimed at boosting liquidity and supporting its growth initiatives.
The facility is structured as a two-year AED-denominated floating-rate loan, with a one-year extension option, and the company plans to utilize it in a phased manner over time.
Emirates NBD Bank and First Abu Dhabi Bank have been mandated to act jointly as Bookrunners, Lead Arrangers, and Coordinators, while Mashreq Bank served as Lead Arranger for the term loan.
The ADX-listed integrated utilities company highlighted the benefits of AED funding, stating it “offers them a cost advantage over international benchmarks with the Emirates Interbank Offered Rate (EIBOR).” TAQA also noted that the two-year tenor aligns well with its debt maturity profile, as the Group has no corporate debt maturities scheduled for 2027.
This term loan is part of TAQA’s broader corporate funding framework, which includes a $20 billion Global Medium Term Note (GMTN) programme and a $3.5 billion revolving credit facility.
Analysts at EFG Hermes said the transaction enhances TAQA’s capital structure flexibility, noting it “would allow the company the funding room to tackle growth projects that include T&D projects in Abu Dhabi and/or capital commitments to fund its equity stake in Masdar.”
TAQA recently reported a Q2 net profit attributable of AED 1.63 billion, with revenue for the quarter at AED 14.23 billion. Its H1 capital expenditure stood at AED 5.2 billion, underlining the company’s continued investment in growth and infrastructure projects.
